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Compete Study Finds That Search Drives Dealer Connections for Automotive Manufacturers
Google delivers more, higher quality referrals
BOSTON – October 16, 2006 – Compete, Inc. today announced findings from its latest automotive study, “Search: Driving Awareness and Consideration.” Compete’s study found that search is increasingly becoming the most effective referral tool for automotive manufacturers. As automotive companies seek new ways to reach elusive online consumers, search sites such as Google have gone beyond search as a tool for shoppers to simply find what they are looking for. Search is actually driving connections between automotive shoppers and dealers and represents a tremendous opportunity for OEMs in referring more leads to dealers.
Compete’s research measured the effectiveness of four online media categories: search, portals, third-party sites and other sites in automotive marketing and advertising. Search dominated the number of referrals to original equipment manufacturer (OEM) branded sites with more than ten million user sessions in the second quarter of 2006. Moreover Compete found that search giant Google is just as effective in driving sales leads as online auto channels, delivering 6.8 million referrals to OEM sites in Q2 of 2006, more than any other individual Search Engine, Portal, or Third Party Auto Site.
Using search as a tool, branded search terms are most effective in driving leads and connections directly to dealers, with four out of five referrals to OEM sites and a 16 percent increase from Q1 to Q2. The magnitude of this influence highlights the power of branded terms to increasingly drive consumer connections to dealers. Of the top search engines, Google is the undisputed leader in referral volume to OEM branded sites. Google also generated more referrals to “Dealer Locators” than any other search engine, revealing that Google offers automotive companies more than just search.
“The business model of automotive marketing and advertising is morphing, and Compete’s findings enable OEMs and their agencies to better understand the power of search,” said Lincoln Merrihew, managing director of Compete’s Automotive Practice. “Outperforming all individual third party automotive sites and aggregates, it’s clear that Google is much more than just a search engine.”
"Media accountability is top of mind for most marketers, and we have proven that search advertising consistently provides a viable medium for increasing purchase consideration among the competitive automotive vehicle landscape", states Bonita Stewart, Google Vertical Market Director for Automotive.
Other key findings from Compete’s study, commissioned by Google, include:
- In the second quarter of 2006, search generated 58% more referrals than portals in aggregate, up from 20% in the first quarter
- Search also generated 48% more referrals than third-party automotive sites, in aggregate
- OEM branded searches accounted for 85 percent of immediate “Locate a Dealer” and 83 percent of immediate “Start Lead Submission” sessions
- The gap between Google and the Third Party Auto sites (in aggregate) shrank from Q1 to Q2
About Compete
Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry’s largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Teva Neuroscience and Upromise®, among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com/.
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Contact:
| Cynthia Stephens | Meghan Journey |
| Compete, Inc. | Racepoint Group, Inc. |
| 617.933.5651 | 781.487.4629 |
| cstephens@compete.com | mjourney@racepointgroup.com |